Buying a new home is an exciting feeling, but taking a loan for that is not. It is more tedious when your credit score is poor, or you have zero credit score. Many people are afraid to buy a new home because to avoid the hunting mortgage process. But, if you keep basics things in mind and know the procedure of availing a loan, then it will be easier for you. In this blog, we are going to tell you the mortgage loan process.
Below we have mentioned the mortgage loan process of the Kirkland mortgage companies:
- Pre-qualification: Pre-qualification begins the loan process. This process is made for the borrower to determine their affordability. Your lender will ask the financial information like income and debts. On the basis of the information, a lender will determine how much you can pay for a house. Once you get the pre-approval, you can find an ideal home for you. One of the significant advantages of this process is that seller always prefers pre-approval certified borrowers over those who don’t have this.
- Mortgage programs and current mortgage rates: Once you get the pre-approval certificate, you need to analyze the mortgage programs and rates. If you are only buying a house as a real estate investment, then adjustable interest rates based loans are the best for you. But, if you are planning to live with your family in that house than go for the fixed interest rate loans.
- The application: The application is the true start of the loan process and usually occurs between days one and five of the start of the loan process. The various fees and closing cost estimates will have been discussed while analyzing the mortgage programs.
- The loan estimate: The loan estimate gives you an idea about the total value of the loan how much you are actually taking from the lender. It includes estimated interest rates, monthly repayment, penalties if you are unable to repay the loan on time, total closing costs, and the estimated cost of the taxes.
- Processing: Once the application is submitted, the processing of the mortgage loan begins. The processor orders the credit report, appraisal, and title report. The information on the application, such as bank deposit, and payment histories and then verified.
- Underwriting: Once the processor has put together a complete package with all verifications and documentation, the file is sent to the lender. The underwriter is responsible for determining whether the package is deemed an acceptable loan.
- Closing: At the closing, be sure to read all the documents you receive and ask any questions you may have about the terms and agreement. At closing time, the borrower should bring some documents that a lender asks him to submit.
After submitting the documents, it is signed; the closing attorney returns the documents to the lender. After verification of the documents, the lender will transfer the loan to your account.